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Coal Gasification Pilot Projects & Advantages

New Delhi: Government has initiated steps to execute the four pilot coal gasification projects announced in Budget 2022-23. Details of the four projects, including location, budget allocation, source of coal, etc, are as under-

Subsidiary Location Mines Coal Requirement


Coal Grade Product Capacity Approx. Cost as per PFR

(in Cr)

ECL Bahadurpur Sonepur Bazari Mine 1.35 MMTPA (G4-G5) Methanol (0.66 MMTPA) 7421 Tenders invited
SECL Bhatgaon Area Mahamaya Mine 1.35 MMTPA (G4) Ammonia (0.72 MMTPA) 7816 Tenders invited
WCL Juna Kunad Niljai Mine 0.8 MMTPA (G9-G10) Ammonium Nitrate (0.66 MMTPA) 7893 Tender document under preparation

For execution of 4th pilot coal gasification projects, CIL & BHEL are jointly exploring a high ash coal (> 40%) based surface coal gasification project for production of ammonium nitrate using BHEL’s indigenously developed technology. The location is under finalisation and the PFR is currently under preparation.

Gasification of coal in the above projects would result in production of Syngas which is further processed to produce different chemicals.

As the above products, produced through goal gasification, will not be used for power generation, no such study has been undertaken. However, the scientific literature on coal gasification enumerate the following:

  1. The SOx and NOx emission is lower compared to regular combustion of in coal-fired boilers in thermal power plants;

(ii) It is technically amenable for CCUS (Carbon Capture, Utilisation and Storage) when gasification is done using pure oxygen compared to regular combustion using atmospheric air; and,

  1. The CO2 emission foot print is comparatively lower for some chemicals produced through coal gasification route.

Coal gasification projects at CIL are being undertaken to promote an alternate and comparatively cleaner use of coal. These projects are envisaged as pilot projects and on achievement of techno-commercial viability, the projects would serve as foundation to further setting up of such plants and will thereby help in ensuring relevance of coal in view of the COP26 pledges.

This information was given by the Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi in a written reply in Lok Sabha today.